The first product is a seven- year fixed-rate mortgage for up to 95 per cent of the property valuation at 6.99 per cent with no insurance requirements, and no lock-in penalties after the fixed rate ends. The arrangement fee of pounds 295 is added to the loan. Up to 100 per cent mortgages are available at 7.49 per cent.
Legal & General is launching a drawdown mortgage lending up to 75 per cent of the value of a property at a variable rate, currently 7.95 per cent. The rate is guaranteed never to exceed base rate plus 1.5 per cent and additional loans can be taken up to the 75 per cent limit for a one-off fee of 3 per cent of the additional loan.
NatWest Bank is offering fixed-rate mortgages at 6.75 per cent until 31 May 2003, or at 7.19 per cent including a pounds 500 cashback and refund of the reservation fee. Redemption penalties apply.
Direct mortgage provider FirstMortgage is offering a 10-year repayment mortgage capped at 7.29 per cent with no redemption penalties and no mortgage indemnity insurance requirement. Rates cannot exceed the cap and can only fall. Minimum loans are pounds 50,000 and the maximum is 90 per cent of the property value.
Norwich & Peterborough BS has raised the interest on its first generation Tessa Select account and Elite II its follow-on Tessa from 7.85 to 8 per cent.
Dresdner RCM is abolishing the 3.5 per cent initial charge on its investment trust PEPs. The annual charge is 1 per cent plus VAT.